Newspaper article St Louis Post-Dispatch (MO)

More Lenders Could Demand Repayment from Foresight

Newspaper article St Louis Post-Dispatch (MO)

More Lenders Could Demand Repayment from Foresight

Article excerpt

Lenders for St. Louis-based Foresight Energy believe the Illinois coal miner has defaulted on a 2010 credit agreement, the company disclosed Thursday, putting it at risk of having to repay nearly $1.3 billion in debt.

The creditors believe a Delaware Chancery Court opinion last week triggered the default, Foresight said late Thursday afternoon in a news release. That opinion found that a change of control in the company occurred when Ohio coal miner Murray Energy bought a 34 percent stake in Foresight with an option to buy 46 percent more.

Murray and Foresight had attempted to restructure the April deal to avoid triggering the change of control provision.

Lenders under the 2010 credit agreement join the owners of $600 million in Foresight bonds who say the Murray deal entitles them to repayment. Foresight said this week that it was in negotiation with those bondholders, who have indicated they won't demand repayment. …

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